401GO Raises $33 Million in Series B Funding to Expand Advisor and Embedded Partner Ecosystem
Sandy, Utah-based 401GO today announced $33 million in Series B funding that will allow the 401(k) platform to expand its embedded partnerships with Human Capital Management providers, financial institutions, and financial advisors while scaling the company’s team, product offerings, and end-to-end technology.
“… we believe we offer a compelling service at a price point others struggle to compete with; we own our platform while others rent theirs.”
401GO CEO and Co-Founder Dan Beck
The round was led by Centana Growth Partners, with participation from existing investors: Next Frontier Capital, Rally Ventures, and Impression Ventures. This Series B comes less than two years after 401GO’s $12M Series A fundraising round, underscoring continued investor conviction in the company’s fully in-house retirement infrastructure.
In a press release today, the company said that unlike providers that depend on legacy recordkeeping engines and third-party compliance tools, 401GO’s unified system delivers consistent payroll integrations and holistic service to partners, resulting in a more frictionless experience for plan sponsors.
“We believe the market is demanding reliable 401(k) solutions, not fragmented systems built on a mix of old vendors, which is the way other fintech providers have approached this challenge. We are now scaling our in-house technology to meet that demand across the entire partner ecosystem,” said Dan Beck, CEO and co-founder of 401GO. “This is why we believe we offer a compelling service at a price point others struggle to compete with; we own our platform while others rent theirs.”
401GO has grown to serve over 5,000 customers, 50,000 participants, and manages more than $1B in assets.
“At Centana, we invest in companies that we believe are reshaping essential financial infrastructure, and we believe 401GO has taken a differentiated approach to the wealthtech space with its integrated platform,” said Ben Cukier, Partner, Centana Growth Partners. “We’re excited to support Dan and the entire 401GO team.”
The retirement market is expanding rapidly, driven by SECURE Act mandates and the rise of state programs, with total 401(k) plans greater than $5M in assets expected to rise to from 600,000 to over one million by 2029 according to The Cerulli Report—U.S. Retirement Markets 2024.
SEE ALSO:
• 401GO Unveils Program Matching 401(k) Sponsors with Advisors
• Technology and the Small Plan Market with 401GO’s Sue Hardy and Cheryl Morrison Deutsch
• 401GO Expands Service Offerings with Apex Fintech Solutions Collaboration
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.